Trustee Training Toolkit by atleha-edu

Atleha-edu

Speaking life into investment decisions

www.atleha-edu.org

WHY IS IT MANDATORY?

HOW IT WORKS

FAQ

Here are the reasons

What to expect

Addressing the unknowns

TRUSTEE TRAINING TOOLKIT UPSKILL | EQUIP | EMPOWER VOL.17

RETIREMENT FUND TRUSTEE EDUCATION WORKSHOPS

The ASISA Academy, in partnership with the ASISA Foundation, is offering the following high quality, fully-sponsored, independently delivered Retirement Fund Trustee Education Workshops to South African Retirement Fund Principal Officers and Trustees. The ASISA Academy is an accredited CPD provider for the Batseta Council for Retirement Funds with each workshop carrying 3 Batseta CPD credits.

ONLINE HALF DAY WORKSHOPS 1. INVESTMENT FUNDAMENTALS 2. RETIREMENT FUND TRUSTEE GOVERNANCE & ETHICS 3. RESPONSIBLE INVESTING 4. EMPLOYEE BENEFITS 5. DEATH BENEFITS 6. ANNUAL FINANCIAL STATEMENT ANALYSIS 7. INVESTMENT POLICY STATEMENT FORMULATION & ASSESSMENT 8. INVESTMENT MANAGEMENT FEES & COSTS 9. INVESTMENT DEFAULT REGULATIONS 10. PRIVATE EQUITY 11. INFRASTRUCTURE INVESTING 12. PROTECTION OF PERSONAL INFORMATION ACT CONTACT: LEARN@ASISAacademy.org.za www.tinyurl.com/RFTE-ASISA

ADVERT RFTE ASISA 21.05.06 297x210mm.indd 1

2021/05/07 13:20:10

CONTENTS 02 Empowering trustees 04 How it works asked 06 Frequently questions 08 A life of learning 10 What to expect 12 Know your acts 16 CPD Quiz

Atleha-edu

Speaking life into investment decisions www.atleha-edu.org Please visit www.atleha-edu.org or email us at info@atleha-edu.org to find out more about our educational publications, resources and workshops. You can also call us on 021 851 0091. All references in our articles are clickable. If you received this publication as a printed copy, you can access the reference by typing the name of the source and the title of the article in a search engine on the web.

EMPOWERING TRUSTEES

Here’s why the new Trustee Training Toolkit (TTK) is a crucial arrow in a trustee’s quiver. Ironically, once you’ve completed module two of the TTK you will understand the value of it. Module 2, Good Governance of Pension Funds, deals with sections 7C and 7D of the Pension Funds Act 1956 (PFA) that describe the objectives and duties of trustees of a pension fund. Importantly, the PFA stipulates that trustees have a fiduciary duty to all members. This includes applying their minds to every decision, from ensuring the fund remains financially sound to determining how death benefits should be paid out. If you are elected or appointed as a trustee, you are legally bound to these duties. A trustee appointment comes with great responsibility. Collectively, the boards of trustees in South Africa preside over more than five trillion in assets. You must know exactly what is expected of you and be equipped to fulfil this responsibility. The new and improved TTK of the Financial Sector Conduct Authority (FSCA), launched in September 2023, aims to do just that. A changing world At the FSCA’s online launch event of the TTK the Deputy Commissioner, Astrid Ludin, explained that world leaders recently endorsed the G20/OECD Principles of Corporate Governance. These principles were first issued in 1990 and are viewed as the international standard for corporate governance. The revisions saw substantial changes, among others a chapter on sustainability and resilience to help companies manage climate-related and other sustainability risks and opportunities. “Governance principles are not static and have to keep pace with changes in our external environment, in

our economy and our society. And in the same way, the Trustee Toolkit needed to be updated,” she added. “More importantly it shows that trustees as directors of boards of retirement funds need to be constantly alive to changes in their environment to make sure they provide the correct stewardship to the savings of workers.”

Ultimately responsible Although section 7 D(1)(e) of the Act allows board members to seek expert advice where they lack knowledge and expertise, board members are ultimately accountable for all good governance of the fund. “They may delegate functions but they are not relieved of the function,” said Zareena Camroodien, Departmental Head of Fund Governance and Trustee Conduct at the FSCA. “That’s why you must be empowered to make informed decisions. You are in a position of trust of other people’s money. After completion, a trustee ought to be better equipped to digest and evaluate advice instead of slavishly following it.” “We see it in various situations where there’s a hands-off approach because the service providers have done it. But that’s not correct. The trustees have to check every aspect, whether it's investments, administration or death benefits distribution.” Transforming the pension fund industry Radesh Maharaj, chairman of Batseta, praised the development of the TTK, especially the role it can play in transformation. “Skills development plays a crucial role in the transformation of the retirement industry

in South Africa by increasing diversity in our sector. It opens up new opportunities for women and other previously disadvantaged members. Education is a core part of our transformation journey.” Maharaj also spoke of the dangerous culture of the overbearing principal officer, trustee or clique within the board. “All trustees' voices should be heard. The TTK will help to empower trustees and to erase that corporate culture,” Radesh concluded.

What the Pension Funds Act says

Section 7C spells out the primary role of a trustee. Trustees shall: a. take all reasonable steps to ensure the interests of members in terms of the rules of the fund and the provisions of the Pension Funds Act are protected at all times; b. act with due care, diligence and in good faith; c. avoid conflicts of interest; and d. act with impartiality in respect of all members and beneficiaries. Section 7D sets out the numerous duties of trustees. The duties are to: a. ensure proper registers, books and records of the operations of the fund are kept, inclusive of proper minutes of all resolutions passed by the board (of trustees); b. ensure proper control systems are employed by or on behalf of the board (of trustees); c. ensure adequate and appropriate information is communicated to the members of the fund informing them of their rights, benefits and duties in terms of the rules of the fund; d. take all reasonable steps to ensure contributions are paid timeously to the fund; e. obtain expert advice on matters where the board (of trustees) may lack sufficient expertise; f. ensure the rules and the operation and administration of the fund comply with the Pension Funds Act, the Financial Institutions (Protection of Funds) Act and all other applicable laws. Applicble laws refer to all other legislation that may have an impact on the various duties of board members and these may include the Income Tax Act, Financial Sector Regulation Act, Divorce Act and the Maintenance Act.

What is a fiduciary? A person or organisation who is responsible, by law, for managing money or property for another person or organisation. A trustee is a type of fiduciary.

Old vs updated TTK The content of the updated TTK is more comprehensive than that of the old Toolkit and includes sections on, among other things, governance, contributions, investments, minimum benefits, protection of benefits, types of benefits, fund rules, death benefits and the effect of divorce and maintenance orders.

REFERENCES • •

Today’s Trustee: Today’s trustee innovates to champion consumer education Trustee Training Toolkit TTK Launch of Phase 1 Modules

HOW IT

WORKS

The Financial Sector Conduct Authority (FSCA) has done a good job of creating a fun and interactive platform that works in a fairly instinctive way. You can probably figure out the Trustee Training Toolkit without reading the user manual or viewing the instruction video. Here are some tips to guide you.

1 2

If the FAQs do not answer your questions, click on Enquiries. This will take you to the COMPLAINTS / ENQUIRIES / COMPLIMENTS section on the FSCA’s website.

If you are unsure of something before you panic, first go through the FAQs that try to answer the basic questions like: Is the new TTK mandatory? Yes. This is where you register or login (once you are registered) for the courses. At the moment they only offer the TTK, but the plan is to, in the future, offer other courses as well.

The user guide shows you step by step how to navigate the TTK, from how to register and complete the modules to taking the formal assessments and downloading the certificate of completion.

Click on the relevant dots and follow the prompts. Very importantly, for an inquiry about the TTK choose “RETIREMENT FUNDS” on the drop-down menu.

Start your learning journey!

Once you’ve started, you can view your progress here.

Once your login is successful, and you have registered for the TTK this page will appear. Click here and start learning!

You are in!

Click here if you want to watch a video of Olano Makhubela, the Deputy Executive Officer responsible for Retirement Funds. Take note, you can not pause the video, you have to watch it to the end.

It’s not necessary to watch the video. If you are strapped for time click here to start learning.

Working through the video

to start the module. Take note the video doesn’t flow Press the to move automatically from scene to scene. You have to press the forward once you understand the concept(s) or backward if you want to rewatch an explanation. This can be frustrating when you already understand concepts and want to move along quickly or skip parts that you are already familiar with, but it is helpful if you are struggling as it gives you time to digest the content before moving to a new concept. If you are already familiar with the content of the module, you can move it along to the end with the course player.

Nearing completion

You have to complete all the modules with a passing rate of 50% to download the certificate.

You exit the video and can take the assessment or navigate somewhere else on the page.

Don’t accidentally click here as it will erase all your progress with the module and you will have to start to revise the over again. Rather just click on the contents you struggled with.

Click here to do the assessment. You have to complete the module – you are not able to take the assessment before going through the module. When you open the module the button is grey – it only changes to orange once you have watched the video.

FAQ We answer all your pressing questions.

Is the TTK mandatory? Yes, the Conduct Standard 4 of 2020, issued on 10 July 2020, was created to prescribe the minimum skills and training requirements for board members of funds as provided for in section 7A(3) of the Pension Funds Act (PFA). The new, revamped TTK is more detailed and comprehensive and seeks to better equip trustees to exercise their fiduciary duties. The FSCA has various measures in place to monitor trustees’ progress and completion of the toolkit, such as reports generated by the TTK platform.

Here's what Section 7A(3) of the PFA says: (3) (a) A board member appointed under subsection (1) must attain such levels of skills and training as may be prescribed by the registrar (Commissioner) by notice in the Gazette, within six months from the date of the board member's appointment. (b) A board member must retain the prescribed levels of skills and training referred to in paragraph (a) throughout that board member's term of appointment or election.

And what if I’ve already completed the old Trustee Toolkit? The new TTK replaces the old Trustee Toolkit and is required to be completed by all board members irrespective of whether they completed the initial Trustee Toolkit.

When must it be completed? Trustees appointed or elected on or before 26 September 2023 must complete the TTK by March 2024. Trustees appointed or elected after said date have to complete it within six months of their appointment or election. What happens if I can’t complete the TTK on time? You can apply for an exemption or extension of the TTK on the FSCA’s pension online system. In terms of Section 26(2) of the PFA, compliance with the TTK is the responsibility of the entire board, failing which the FSCA may take appropriate regulatory action. This could be in the form of an enforceable undertaking (where the board makes a formal commitment to rectify the issue), an administrative penalty or the removal of the trustee. The FSCA will assess each case on its own merits. How many modules are there? 22 in total. The first 11 modules were launched in September. It is anticipated that the next 11 modules will be available in March 2024. Can I fail? No, the purpose of the TTK is not to burden you with an exam. The TTK aims to empower trustees with the necessary knowledge to ultimately make the best decisions for the beneficiaries who appointed them. The TTK uses module assessments and a summative assessment to test your grasp of the content. There is ample opportunity to revisit difficult concepts.

Can I improve my score? An overall score of at least 50% is required to complete the toolkit successfully. Upon completion, you will be provided with a certificate indicating your scores. However, there are no restrictions on the number of times you may complete the toolkit, either to improve the score or to ensure competence. Do I have to study? No, you don’t have to study beforehand. However, various sections of the PFA are discussed in depth in the toolkit. The more you understand about the PFA, especially sections 7C to D that discuss the duties of trustees, the easier and quicker the TTK will be. How long will it take? It depends on your existing knowledge. The module videos range from 20 minutes to 45 minutes in length. Plan for at least an hour per module. What about trustees of funds that do not fall under the PFA, like the Transport Sector Pension Fund and the Government Employees Pension Fund? At the moment, the FSCA cannot compel these funds’ trustees to complete the toolkit. However, once the Conduct of Financial Institutions (COFI) Bill is enacted all public sector funds will fall under the FSCA’s remit. From that day forward, said trustees have to also complete the TTK. It is anticipated that the COFI Bill will be enacted early in 2024. Does the principal officer have to complete the TTK? Section 7A(3) of the PFA only refers to board members, i.e. trustees, therefore the FSCA cannot legally compel principal officers to complete the training. Can I earn CPD points if I complete the TTK? The FSCA will not assign CPD points to trustees for completing the TTK. Batseta however has assigned 8 CPD points for the completion of the toolkit. Batseta members must submit their toolkit certificate for recognition.

REFERENCES • •

FAnews: FSCA Conduct Standard 4 of 2020: Minimum skills and training requirements for board members of retirement funds Trustee Training Toolkit TTK Launch of Phase 1 Modules

A LIFE OF LEARNING

As a trustee, you are a custodian of your retirement fund’s assets. In South Africa, trustees as a collective keep watch over more than five trillion rands ̶ capital that plays a crucial role in the economy. Here are seven organisations that aim to empower trustees with continuous development, often free of charge.

Atleha-edu

This non-profit organisation focuses on retirement fund trustees, principal officers, management committee members, and fund member awareness and education. On atleha-edu.org you will find a mixture of educational publications, articles, and video and audio content (including translations into various African languages such as isiZulu, Sesotho and isiXhosa). Their educational content is accredited for Batseta continuing professional development. They also offer in-person workshops across the country, free of charge. Sign up for the newsletter here. Visit atleha-edu.org

ASISA Academy

The Academy, in partnership with the ASISA Foundation, delivers a range of in-person and online workshops to trustees and principal officers free of charge. They cover topics such as governance, member benefits and foundations for retirement fund trustees. Their workshops are ideally run with individual funds but can also be delivered as multi-fund courses. On completion, delegates receive ASISA Academy attendance certificates that reflect CPD points. Visit asisa.org.za/academy/programmes/rfte/

Today’s Trustee

What are CDP points? The continuing professional development (CPD) system is designed to ensure that individuals within regulated professions, such as lawyers, accountants and engineers, engage in continuous learning to stay updated on industry developments and enhance their skills to maintain high standards of competence. Professional bodies and regulatory authorities often require their members to accumulate a certain number of CPD points over a specific period. These points are awarded for participating in approved training courses, workshops, conferences and seminars. Batseta is the accrediting body for trustee- and principal officer-focused CPD.

This digital magazine seeks to support and empower retirement fund trustees and principal officers, improving their roles by boosting their skills and awareness. A distinguishing factor of Today’s Trustee is its editorial independence – it doesn't take sides with regulators or service providers. It stands on its own, aiming to spark discussions and debates on important topics for those managing retirement funds and the millions of South Africans who save through them. The free magazine is delivered straight to your inbox every quarter. Plus, there's a blog to keep you updated on the latest news and insights. Subscribe here. Visit totrust.co.za

The number of CPD hours trustees must complete each year. The CPD cycle is from 1 March to 28 February.

Batseta

Batseta, the Council of Retirement Funds of South Africa, is a non-profit member organisation that focuses on the interests of principal officers, trustees and fund fiduciaries within the industry. It is a professional body for retirement fund principal officers and trustees and is registered with the South African Qualifications Authority. It is also an Assessment Quality Partner or examining body for the principal officers’ and trustees’ occupational qualifications. Batseta offers a year-round hub for growth and learning. It hosts various CPD events such as the annual Winter Conference, workshops and more – check out the calendar. The website also has a Blue Couch 101 section where it hosts video clips and podcasts on relevant industry topics from its corporate sponsors. Here concepts such as ESG investing, retirement planning and the green economy are explained. Visit batseta.org.za FOR YOUR DIARY 27 to 29 May: Winter Conference 2024

Asset TV

Trusted by a community of over 600 000 advisors, pension funds, consultants, family offices, and wealth managers worldwide, this video hub is a prime resource for due diligence, validation, research, and continuous learning in the realm of retirement funds. Asset TV creates videos that count as Continuing Education (CE) and CPD credits – from the latest news to conferences and expert opinions. It is almost like a YouTube channel that focuses on all things investment. You can keep track of your progress with a personal viewing log, and enhance your CPD profile by adding reflective statements based on what you've learned. Visit assettv.co.za

Pensions World South Africa

Institute of Retirement Funds Africa (IRFA)

This association represents the interests of the industry in South Africa and across the continent. It represents the industry in negotiations with the government and regulators, which would include commenting on legislation and tax matters. Anybody involved in the industry may apply for membership. Benefits include among others the opportunity to join the Institute’s working committees, participation in its research projects and discounts on conferences and workshops, which are CPD accredited by the Financial Planning Institute of Southern Africa (FPI). They offer opportunities to learn about the pension fund industry, keep up to date with new developments, and influence pension fund outcomes. Visit irf.org.za FOR YOUR DIARY 6 to 8 October 2024: IRFA 2024 Conference

This digital magazine provides educational information for trustees and also keeps readers up to date on topical issues and challenges facing the employee benefits market – four issues are published per year. The magazine is owned by the Employee Benefits Network (EBnet), a digital retirement industry knowledge portal. It operates in South and Southern Africa and has the widest digital footprint in the industry. The platform distributes weekly emails to over 13 500 subscribers. The IRFA and the FPI endorse and are affiliated with EBnet and Pensions World SA, thus you can earn CPD points by engaging with the educational content in the publication. You can access the free online magazine and complete CPD assessments on its website. Visit pensionsworldsa.co.za

WHAT TO

EXPECT

Almost all retirement funds in South Africa are governed by the Pension Funds Act (PFA) 24 of 1956. As with any act of law — or legal document — it is written in legalese that is difficult to decode for the man on the street. One of the main goals of the TTK is to unpack how the PFA governs the decision making of the board of trustees. Here’s a snapshot of what the modules cover. 1 Introduction to Pension Funds You meet the trustees, Patrick and Lebo, who explain the basics of pension funds. Concepts that will be mentioned throughout the course are explained in this module, such as pension and provident funds, definedbenefit (DB) and defined-contribution (DC) funds, and umbrella funds.

3 Registration, Rules and Rule Amendments The focus of this module is the process by which a pension fund is registered at the FSCA. You will also learn how retirement fund rules, and changes to these rules, are registered. This registration with the regulator is the first step in making the retirement fund a legal entity separate from its members and the participating employer.

2 Good Governance of Pension Funds Good governance is the cornerstone of a retirement fund. This module explains, in detail, the roles, duties and obligations of the trustees and the principal officer towards the fund members.

4 Contributions This module explains how two types of contributions – deductions from the members’ salary and/or from employers – to a pension fund are paid. It also covers the legal requirements regarding payment, including the penalties and actions that may be taken by the principal officer/monitoring person, the administrator and the board itself in case of non-payment of contributions. A contribution holiday is also explained.

5 Investments Although a retirement fund will usually have an outside investment manager/s, the trustees must have a basic knowledge of investment principles and accounting. The module covers different types of investments, investment strategies and the guidelines for investment decisions. There is also a section on integrating Environmental, Social and Governance and B-BBEE criteria into an investment policy. 6 Types of Benefits The obvious benefit of belonging to a retirement fund is that it offers you a regular income once you retire, but most retirement funds also offer other benefits. Members are also entitled to a benefit if they leave the fund before retirement, if they become disabled or if they pass away before retirement age. These four benefits are discussed in depth in this module. 7 Minimum Benefits The module focuses on the minimum benefit a fund member is entitled to if the member leaves the fund before reaching retirement age (due to retrenchment, dismissal, disablement, etc.). This module is tricky because you have to understand the different treatments of this withdrawal amount within a DB and also a DC fund. The module further explains how, on 7 December 2001, the Second Amendment Act (surplus legislation) was implemented to end the differential treatment of DB and DC funds, as well as the implications thereof for the various fund types.

10 Affect of Divorce and Maintenance on Pension Benefits Generally, the retirement fund assets of a member do not form part of the member’s estate or joint estate, but divorce proves an exception to the rule. A non-member spouse can claim a percentage of the member’s interest when the parties get divorced. The focus of this module is to understand the effect of divorce on a member’s benefit in the light of provisions made by the PFA, the Divorce Act, the Marriage Act and the new Marriage Bill intent on creating a singular statute regulating all marriages in SA, the Recognition of Customary Marriages Act, the Civil Unions Act, the Maintenance of Surviving Spouses Act and the Maintenance Act. 11 Surplus Surplus represents that part of a retirement fund’s assets that has not been set aside to meet fund liabilities. In short, it’s almost like leftover cash. The module explains how the surplus is calculated, how it can be utilised and which stakeholders can benefit from it.

CERTIFICATION

8 Protection of Benefits Section 37A(1) of the PFA aims to protect the accrued benefits of members and beneficiaries. This module explains that members cannot use their benefits as security. There are, however, exceptions to the rule and these exceptions are invariably set out in the rules and the PFA.

TEST 5 MODULE

ONLINE EXAMINATI

20 min 15 left

9 Disposition of Death Benefits Trustees have the arduous and often sensitive task of distributing the retirement benefit to dependants upon the death of a member, with the object that trustees must ensure those dependants who were financially dependent on the member before his death continue to receive financial support after his death. The trustees have to determine who qualifies as dependants and nominees, how to equitably distribute the lump sum, and the appropriate method of payment.

ONLINE COURSE

REFERENCES • •

SA Financial Markets Journal Trustee Training Toolkit

KNOW YOUR

ACTS

Most retirement funds are governed by the PFA and/or its amendments and an array of other acts. Here’s a list of the acts that trustees should have an understanding of. • • • • • • • • • • • • •

Auditing Profession Act, No. 26 of 2005 Basic Conditions of Employment Act, No. 75 of 1997 Civil Union Act, No. 17 of 2006 Collective Investment Schemes Control Act, No. 45 of 2002 Companies Act, No. 71 of 2008 Conduct of Financial Institutions Act (when enacted) Constitution of the Republic of SA, Act. No. 108 of 1996 Criminal Procedure Act, No. 51 1977 Divorce Act, No. 70 of 1979 Electronic Communications and Transactions Act, No. 25 of 2002 Financial Advisory and Intermediary Services Act, No. 37 of 2002 Financial Intelligence Centre Act, No. 38 of 2001 Financial Sector Regulation Act, No. 9 of 2017

• • • • • • • • • • • • • •

Income Tax Act, No. 58 of 1962 Insurance Act, No. 18 of 2017 Labour Relations Act, No. 66 of 1995 Long-term Insurance Act, No. 52 of 1998 Maintenance Act, No. 99 of 1998 Marriage Act, No. 25 of 1961 Pension Funds Act, No. 24 of 1956 Promotion of Access to Information Act, No. 2 of 2000 Protection of Personal Information Act, No. 4 of 2013 Recognition of Customary Marriages Act, No. 120 of 1998 Short-term Insurance Act, No. 53 of 1998 Tax Administration Act, No. 28 of 2011 Trust Property Control Act, No. 57 of 1988 Value-Added Tax Act, No. 89 of 1991

REFERENCES • •

SA Financial Markets Journal Trustee Training Toolkit

RETIREMENT FUND TRUSTEE EDUCATION WORKSHOPS

FOUNDATIONS FOR RETIREMENT FUND TRUSTEES The purpose of this course is to provide South African Retirement Fund Trustees with the basic knowledge and skills necessary to fulfil their fiduciary and governance duties optimally. It will also prepare Trustees to successfully complete the FSCA trustee toolkit. THE LEARNING AREAS OF THIS COURSE ARE: The Retirement Fund Industry and savings landscape in South Africa

The Retirement Fund Environment Retirement benefits and Fund Types Legal and Regulatory and Complaints resolution Environment Fund Fund Registration Registration and and Rules Rules construction construction The TheRole, Role,Responsibilities Responsibilitiesand andDuties Dutiesofoftrustees trustees Trustee Trusteeethics ethicsand andGovernance GovernanceofofRetirement RetirementFunds Funds Contributions Foundations of Fund: Contributions Foundations of Fund: Risk Management Investments Member Benefits Information and member communication Death Benefits Distribution Treating Customers (Members) Fairly Surpluses

BROCHURE ENROL NOW This workshop is offered on a fully funded basis to South African Trustees and Principal Officers. To non-trustees who wish to attend this workshop, a fee of R1,900 Excl. VAT will be charged.

Accredited CPD provider for the Batseta Council for Retirement Funds.

Atleha-edu Speaking life into investment decisions

www.atleha-edu.org

About Atleha-edu NPC In Sesotho, when you tell someone to “Atleha” you are telling them to prosper. By combining “Atleha” and “edu” we want to contribute to quality financial education. Our purpose at Atleha-edu, a non-profit company (NPC), is to help ordinary South Africans save and invest for a better tomorrow. We do this through Financial Sector Code (FSC)-compliant awareness and interactive education programmes focused on retirement fund trustee, principal officer, management committee member, and fund member awareness and education initiatives.

We provide accessible, quality consumer financial educational (CFE) content via:

Member education short articles and infographics

Educational videos

Educational sound bits

Educational short articles

Educational publications

Educational infographics

Virtual reality (VR) experiences

Interactive trustee and fund member workshops (in-person and virtual)

Youth education

Atleha-edu’s CFE offers the following benefits: • • • • •

Retirement Fund Trustee and Member education on topical retirement fund issues, as envisioned by the Financial Sector Conduct Authority (FSCA) and Financial Sector Code (FSC) A mixture of educational publications, short articles, video and audio content (including translations into various African languages, such as isiZulu, Sesotho and isiXhosa) Educational content accredited for BATSETA Continuous Professional Development (CPD) All content is available at no cost No funder or service provider product marketing as per FSTC Guidance Note 500

Atleha-edu Speaking life into investment decisions

www.atleha-edu.org

INFRASTRUCTURE EXPOSURE

LONG-TERM INVESTING

PRESCRIBED ASSETS

through multiple asset classes

and infrastructure

in South Africa

Atleha-edu Speaking life into investment decisions

Atleha-edu

Atleha-edu Speaking life into investment decisions

www.atleha-edu.org

Speaking life into investment decisions

www.atleha-edu.org

FSCA INTERVIEW

UNDERSTANDING RISK

RISK MANAGEMENT

SOUTH AFRICA-UK PACT

CLIMATE RISK

SUSTAINABLE FINANCE PRACTICES

'Everything you do is risk management'

and the importance of managing it

process steps

Supporting transformational climate action

Improving corporate reporting

Opportunities to unlock investment

www.atleha-edu.org

OVERVIEW

HEDGE FUNDS

REGULATION

How hedge funds operate

Responsible investing and ESG opportunities

The South African context

Atleha-edu Speaking life into investment decisions

www.atleha-edu.org

INTERNATIONAL BEST PRACTICE

GOVERNMENT’S ROLE

UNLOCKING OPPORTUNITIES

Standards, regulations and guidelines

National Treasury’s recommendations

The key role of financial services

UK PACT

Brand guidelines

RETIREMENT FUNDS AND RISK MANAGEMENT

AN INTRODUCTION TO INFRASTRUCTURE INVESTMENTS

6.1

VOL.7

VOL.8

ALSO IN THIS ISSUE: EXAMPLES OF INFRASTUCTURE INVESTMENT | UNDERSTANDING THE DIFFERENT TYPES OF INFRASTRUCTURE INVESTMENTS | INFRASTRUCTURE RESOURCES FOR RETIREMENT FUNDS

ALSO IN THIS ISSUE: GUIDELINES FOR RETIREMENT FUNDS AND RISK MANAGEMENT | OVERVIEW OF RISK MANAGEMENT PROCESS | RESOURCES FOR FURTHER INFORMATION

This educational publication is funded by the ASISA Foundation and Prescient

FOUNDATION

Country Programmes: logos for country partners The country name should always be right aligned above the linear version of the master logo. The country name should appear in the same blue used in the master logo. Kerning should be set to optical and tracked to +130. The corresponding country flag should be placed to the right of the Union Jack at equal size. The width of the two flags should not exceed the width of the linear master logo. A 0.25pt keyline set in 30% black should be used to frame flags which include blocks of white (with the exception of the UK).

This educational publication is funded by the ASISA Foundation

FOUNDATION

CLIMATE-RELATED FINANCIAL DISCLOSURE

ALTERNATIVE ASSET CLASSES:

Aligning South Africa to global best practice Funded by

SPECIAL EDITION ALSO IN THIS ISSUE: AN INTRODUCTION TO CLIMATE RISK AND INVESTMENT CLIMATE RISK AND SCENARIO ANALYSIS | OVERVIEW OF THE TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES (TCFD)

UNDERSTANDING HEDGE FUNDS VOL.8

ALSO IN THIS ISSUE: AN INTRODUCTION TO ALTERNATIVE ASSETS | DEMYSTIFYING HEDGE FUNDS: COMMON QUESTIONS ANSWERED | KEY TERMS AND DEFINITIONS | REGISTER FOR CPD CREDITS

SUSTAINABLE INVESTING 2.0

WHAT PART SHOULD SOUTH AFRICAN RETIREMENT FUNDS PLAY? VOL.11 ALSO IN THIS ISSUE: JSE ESG AND CLIMATE DISCLOSURE GUIDANCE | KEY SUSTAINABLE FINANCE INITIATIVES REGISTER FOR CPD CREDITS This educational publication is funded by Ninety One and the ASISA Foundation

This educational publication is funded by Fairtree Asset Management and supported by the ASISA Foundation

FOUNDATION

P 22

Per the requirements of FSTC Guidance Note 500, all Atleha-edu resources on the Atleha-edu website are made available to retirement fund trustees, principal officers and members at no cost. Atleha-edu has full editorial control over educational content and funder branding.

Our funders and strategic partners: • • •

Atleha-edu NPC receives FSC Consumer Financial Education funding from a number of industry partners and funders. We are most grateful to the ASISA Foundation, ASISA Academy, Alternative Prosperity Foundation and BATSETA Council of Retirement Funds for South Africa for their strategic partnership and funding and implementation support. A full list of our funders is available via www.atleha-edu.org/partner-with-us

Monitoring Evaluation and Learning (ME&L) All our Atleha-edu educational content and initiatives are aligned to a formal Theory of Change and Monitoring Evaluation and Learning (ME&L) programme. An external Monitoring and Evaluation service provider reviews our ME&L programme on an annual basis. The ASISA Foundation also reviews all Atleha-edu educational content and initiatives where it has specifically been a funder or co-funder.

Financial Sector Code (FSC) Consumer Financial Education compliance Per the FSC requirements, an independent third-party service provider annually reviews all our Atleha-edu educational content and CFE initiatives and issues Atleha-edu NPC with an annual Independent Competent Persons Report (ICPR). The ICPR is provided to CFE funding partners who are then able to use the Atleha-edu ICPR when claiming FSC Scorecard points for their Consumer Financial Education spend through Atleha-edu NPC.

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Contact us for more info about Atleha-edu NPC or CFE funding opportunities Email: info@atleha-edu.org | Phone: 021 851 0091

TEST YOUR LEARNING TO RECEIVE CPD CREDITS Atleha-edu Consumer Financial Education initiatives are accredited for Continuous Professional Development (CPD) in partnership with the Batseta Council of Retirement Funds for South Africa. To register your CPD credits for having read this Atleha-edu Consumer Education publication, please complete the following quiz and return this completed form via email to: info@atleha-edu.org or post it to: Atleha-edu, Postnet Suite 272, Private Bag, Somerset West, 7129

Example question: Please choose the correct answer. True or false? Foreign investment limits were revised upward by National Treasury in February 2022. x

True False

1. Fill in the missing words. Trustees appointed before 26 September 2023 have until ____________________________________ 2024 to complete the Trustee Training Toolkit (TTK). ____________________________________________

2. Although the Pension Funds Act allows board members to seek expert advice where they lack knowledge and expertise, board members are ultimately ______________ for all good governance of the fund.

6. Choose the correct answer. How many CPD hours must trustees complete each year? None, CPD is only relevant to principal officers. 100 20

7. What organisation created and launched the new TTK? Financial Sector Conduct Authority Batseta ASISA Academy

____________________________________________

3. True or false? Trustees who completed the previous Trustee Toolkit are exempt from completing the new updated TTK. True False

4. Choose the correct answer. Choose the correct answer. How many CPD points can a trustee earn upon completion of the TTK? 4 8 The TTK does not qualify for CPD points.

8. Another term for a trustee is a __________________________________

9. Complete the sentence. The ___________________ issued under section 7A (3) of the Pension Funds Act provides that board members must attain prescribed levels of skills and training and retain such prescribed levels throughout their term of appointment. ___________________________________________

5. True or false? A trustee can fail the TTK.

10. Complete the sentence. Section _______________ of the Pension Funds Act sets out the numerous duties of trustees.



True False